Clifford Chance back in £1m PEP club as revenues nudge up

Clifford Chance has posted a 2 per cent increase in global revenue for the 2010-11 financial year, with the figure rising from £1,197m in 2009-10 to £1,219m.

David Childs
David Childs

The slight upturn comes as the firm’s average profit per equity partner (PEP) pushed over the million-pound mark, rising 8 per cent to £1.005m from £933,000. This is the first time the firm’s PEP has broken the million-pound mark since 2007-08.

Net profit rose 10 per cent from £347m to £381m, giving a profit margin of 31 per cent.

In total, 35 per cent of global turnover came from the UK, with the figure rising 1 per cent to £430m.

US revenues were flat on last year, remaining at £140m, representing 12 per cent of the firm.

Managing partner David Childs said the US and UK remained central to the firm’s strategy. He said the firm aims to strengthen in the States organically, but did not rule out future mergers.

Revenue in Asia was up 16 per cent, with the region now contributing 12 per cent of the firm’s global income. The figure does not include the firm’s Asian offices, which came into being following mergers with firms in Sydney and Perth in May.

The firm aims to double revenue in the region by 2014.

The Middle East practice also saw an upturn, with revenue rising 17 per cent, making up 3 per cent of global turnover.

Continental Europe now makes up 38 per cent of income, although the firm made 2 per cent less in pounds sterling in the region in the past financial year. This figure becomes a 2 per cent increase based on local currency.

Childs said the corporate, finance and litigation practices were strong contributors to the firm’s profits.

He also ruled out issuing a bond, as it did a decade ago, and confirmed the firm has a strong balance sheet.

“This is a strong set of results which demonstrate how our investments over many years are delivering for the firm and for our clients.  We’re very pleased to be in growth mode again and to see our profitability further strengthened,” Childs said.